In a significant move, Paramount is set to lay off approximately 1,000 workers on Wednesday, with an additional 1,000 layoffs anticipated in the future, according to sources familiar with the situation who spoke to Deadline. The majority of the employees affected by this decision will be based in the United States, although international divisions are also expected to implement cutbacks in the weeks to come.
These long-anticipated cuts come more than two months after the completion of the $8.4 billion merger between Paramount and Skydance. Following the merger, executives at the newly formed company reassured Wall Street of their commitment to achieving $2 billion in cost savings, with a portion of these savings expected to stem from workforce reductions. Earlier reports from Bloomberg highlighted the timing and scale of this week's layoffs.
Initially scheduled for November, the layoffs were moved up to this week, as Deadline previously reported. In a press conference held last August after the merger's completion, Jeff Shell, the company president, emphasized the need for a careful approach to the layoffs, stating, “We don’t want to be a company that has layoffs every quarter.”
The previous management team at Paramount had already executed significant workforce reductions, completing three rounds of layoffs in late 2024 that collectively reduced the workforce by approximately 15% in the U.S. Layoffs during post-merger processes can severely impact employee morale, and for David Ellison and his management team, the challenge is compounded by the company's pursuit of future M&A activities.
Shortly after the merger with Skydance, Ellison made multiple attempts to acquire rival Warner Bros. Discovery (WBD). Reports surfaced last week indicating that these overtures were rejected, although WBD has since announced a review of its strategic alternatives, hinting at the possibility of an auction for interested parties. Companies like Comcast and Amazon are believed to be among those exploring potential acquisition opportunities.
Within Paramount's corporate structure, CBS Sports has managed to weather recent cutbacks relatively unscathed. In contrast, other divisions have faced challenges due to ongoing pressures on theatrical moviegoing and linear TV viewing. As the post-merger executive landscape begins to take shape, former co-CEOs Brian Robbins and Chris McCarthy departed the company just as the merger officially closed last August.
The decline in viewership and advertising revenues associated with linear TV has strained various segments of Paramount's portfolio, particularly legacy cable operations. As the company navigates these turbulent waters, the focus remains on stabilizing operations while also seeking new opportunities for growth through potential mergers and acquisitions.
